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AJAY RASTOGI, C. T. RAVIKUMAR
Sabarmati Gas Limited – Appellant
Versus
Shah Alloys Limited – Respondent
JUDGMENT :
C.T. Ravikumar, J.
1. This appeal under Section 62 of the Insolvency and Bankruptcy Code, 2016 (IBC) is preferred by Sabarmati Gas Limited (hereinafter referred to as the appellant) against the final judgment dated 19.12.2019 of the National Company Law Appellate Tribunal (NCLAT) in Company Appeal (AT) (Insolvency) No. 820 of 2019. As per the same the NCLAT dismissed the appeal preferred by the appellant against order dated 27.06.2019 in CP (IB) No. 516/9/NCLT/AHM/2018 of the National Company Law Tribunal, Ahmedabad Bench, (NCLT) dismissing the application filed under Section 9 of the IBC, in its capacity as operational creditor of ‘Shah Alloys Limited’ (hereinafter referred to as the ‘respondent’).
2. In the captioned appeal mainly, twin questions of law call for consideration id est :-
(i) Whether in computation of the period of limitation in regard to an application filed under Section 9, IBC the period during which the operational creditor’s right to proceed against or sue the corporate debtor that remain suspended by virtue of Section 22 (1) of the Sick Industrial Companies (Special Provisions Act, 1985) (SICA) can be excluded, as provided under Section 22 (5) of SICA?
(1) Initiation of CIRP – Exclusion of period of limitation – In absence of provisions for exclusion of such period in respect of application under Section 9, IBC, despite combined reading of Section ....
A Section 9 application under IBC is not maintainable if there are existing pre-existing disputes pertaining to the operational debt, preventing the Adjudicating Authority from initiating the Corpora....
(1) Sine qua non for initiation of corporate insolvency resolution process is occurrence of default. Period of limitation for making application under Section 7 or 9 of IBC is three years from date o....
Genuine pre-existing dispute raised prior to Section 8 notice, alleging economic coercion in credit note issuance, justifies rejection of Section 9 application without merits examination.
IBC threshold limit of Rs.1 Crore for Section 9 petitions determined on filing date (initiation date), not demand notice date; post-notice payments reduce debt validly; pre-existing disputes bar admi....
(1) IBC is not just another statute for recovery of debts – Nor is it a statute which merely prescribes modalities of liquidation of a Corporate body, unable to pay its debts – It is essentially a st....
Pre-existing plausible dispute on wage quantum, evidenced by prior labour proceedings, bars Section 9 admission even if raised post-demand notice.
The main legal point established in the judgment is the interpretation of the limitation period for filing an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, and the applicab....
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